China slapped export restrictions on rare earth elements back in April - samarium, gadolinium, dysprosium, and others. These materials are critical for Boeing's aircraft. The 787 Dreamliner and other models need them for composites, electronic systems, and fuel-efficient engines. Without access to these specialized components and magnets, Boeing could face serious production delays.
And it's getting worse. China Southern Airlines just cancelled an order for ten 787s, and there's talk of broader Chinese bans on Boeing imports. If restrictions tighten further, how is Boeing supposed to deliver on anything?
Stock's at $247 now, rebounded from the $128 low in April thanks to over $12 billion in defense contracts. Sounds great, but those contracts don't mean much if Boeing can't get the components to actually build the planes. The supply chain risks could blow this up fast.